Related Events

Rebounding retail sales hit a snag in May as Michigan’s retail industry posted sharply lower numbers, according to the latest Michigan Retail Index survey, a joint project of Michigan Retailers Association and the Federal Reserve Bank of Chicago.

May’s performance was the weakest since November and broke a string of three consecutive months above 50 on the 100-point index.

The drop coincided with an unexpected retrenchment by consumers across the nation. Excluding autos, U.S. retail sales fell by 1.1 percent, the largest month-to-month decline in 14 months, according to the U.S. Commerce Department. Analysts had predicted a small gain.

We expected to see continued improvement here, because the state’s unemployment rate dropped in May and because retailers were up against some weak sales numbers from a year ago. But it appears that national economic issues, including a sharp drop in home sales, were a major drag against consumer spending.

The Michigan Retail Index survey for May found that 39 percent of retailers increased sales over the same month last year, while 45 percent recorded declines and 16 percent saw no change. The results create a seasonally adjusted performance index of 42.4, down from 57.9 in April.

Looking ahead, 49 percent of retailers expect sales during June-August to improve over the same period last year, while 20 percent project a decrease and 31 percent expect no change. That puts the seasonally adjusted outlook index at 62.3, down from 74.3 in April.

Restricted Content

About GRBJ

Since 1983, the Grand Rapids Business Journal has been West Michigan's primary and most-trusted source of local business news. The weekly print edition of the Business Journal, a must-read for the area’s top decision-makers, is known as the business newspaper of metro Grand Rapids, Holland, Muskegon and all of West Michigan.

grbj.com provides the same trusted and objective business reporting that the Business Journal is known for -- plus real-time original content, timely enewsletters/alerts, exclusive blogs and more. Business Journal subscribers receive the weekly print edition, including bonus publications like the annual Book of Lists, and also complete access to all content on grbj.com.

The Grand Rapids Business Journal is published by Gemini Publications.